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Global Warming Will Have Huge Impact on GDP: Study

Submitted by Andrea Cordell on Mon, 10/26/2015 - 09:47

We are aware of the fact that global warming is causing several environmental changes that one day could become a reason for end of life on earth. Now a team of researchers through a study found that climate change can also have a major impact on the GDP.

Several previously conducted studies have also clearly depicted how climate change can be the cause for civil war, expensive commodities, inadequate water supply and more powerful storms, among other threats.

Findings of the new study conducted by researchers at Stanford University and the University of California, Berkeley, were published in the journal Nature.

Researchers during the study found that a temperature of about 13 degrees Celsius or 55 degrees Fahrenheit will increase the GDP growth per capita. As per study authors when the temperature is under or above the required range it will cause negative changes to economic growth.

Researchers in order to determine how temperature changes are related to GDP went through economic data collected from the World Bank, the data was of 166 countries between 1960 and 2010.

Co-author Marshal Burke, assistant professor in the department of earth system science at Stanford University, said, “People have been worried about effects on people in poor countries would be really negative. Main findings are that rich countries are not isolated. Climate change could reshape global economy. Rich companies could be impacted in important ways”.

Researchers noted that when average temperature in a county increases, GDP drops. After all, the calculations were found that 77% of countries across the world will be poorer and will be affected the most.